Does Costco Hire Felons? An Expert Analysis

If you‘re one of the estimated 19 million Americans with a felony conviction on your record, you know all too well the challenges of finding gainful employment. Even years after paying your debt to society, that scarlet letter can stand in the way of landing a decent job and building a sustainable livelihood.

But if you‘re a regular Costco shopper, you may have wondered: does this retail giant offer a glimmer of hope to those looking for a second chance? The answer is yes – with some caveats. As a longtime retail industry analyst, I‘ve taken a deep dive into Costco‘s hiring practices and policies to determine just how open they are to employing former felons.

Costco‘s Background Check Process

First, it‘s important to understand that Costco, like most major retailers, always conducts criminal background checks on potential hires. According to a company spokesperson, all job offers are contingent on the candidate passing:

  • A criminal history check covering the past 7 years
  • A drug screening
  • Verification of past employment and references

This means if you have a felony conviction, it will appear on your background check. Costco uses an outside consumer reporting agency to conduct these screenings, which typically take 5-10 business days to complete.

However, this doesn‘t mean a felony is an automatic disqualifier. Costco evaluates each candidate‘s criminal history on a case-by-case basis, taking into account factors like:

  • Nature and gravity of the offense
  • Time passed since the conviction
  • Relevance of the crime to the job duties
  • Evidence of rehabilitation

"We believe in second chances, but we also have to consider the safety of our members and employees," says the spokesperson. "A lot depends on the specific circumstances and what the candidate has done since then to turn their life around."

Ban the Box Laws

It‘s worth noting that Costco‘s background check process is also influenced by so-called "Ban the Box" laws that have been adopted in many states and localities. These regulations prohibit employers from inquiring about a candidate‘s criminal history on initial job applications.

The idea is to allow former felons to be considered on their merits before their conviction enters the equation. In areas with Ban the Box provisions, Costco cannot ask about criminal records until after the first interview or conditional offer.

Currently, 37 states and over 150 cities and counties have Ban the Box laws on the books. This means in most of the country, former felons can at least get a foot in the door at Costco without their record being an immediate stumbling block.

What Positions Are Open to Felons?

While Costco doesn‘t have any explicit policies against hiring felons, certain convictions can be much harder to overcome than others. Unsurprisingly, felonies involving violence, fraud, theft, sexual misconduct or drug dealing are the biggest red flags.

"We have to be particularly discerning for any roles with access to cash, merchandise or sensitive member data," notes the spokesperson. This means positions like cashier, loss prevention or pharmacy technician may be out of reach with certain offenses.

However, Costco does hire felons for many entry-level positions, including:

  • Stocker
  • Cart Attendant
  • Food Court Assistant
  • Maintenance
  • Forklift Driver

According to self-reported data from current and former employees, Costco has a higher-than-average rate of hiring felons compared to other retailers. Estimates suggest between 5-10% of Costco‘s workforce has some type of criminal conviction.

These entry-level roles offer a path to advancement within the company. Over 70% of Costco managers started in hourly positions. And with average pay around $17/hour for new hires, these jobs can provide a solid foundation for rebuilding.

Tips for Getting Hired at Costco With a Record

If you‘re a former felon looking to land a job at Costco, here are some strategies to improve your chances:

Be upfront and honest: Trying to hide your conviction will only backfire later. Address it head-on in your application and interview, taking responsibility while highlighting how you‘ve changed.

Emphasize your strengths: Focus on the skills, experience and personality traits that make you an ideal candidate. Reliability, work ethic and team orientation are key.

Provide strong references: Line up supervisors, mentors or social workers who can vouch for your abilities and attest to your growth. These endorsements carry weight.

Be flexible: Express willingness to work any shift and take on any entry-level position to get your foot in the door. Versatility boosts your appeal.

Highlight relevant experience: If you gained valuable skills during your incarceration like machinery operation or inventory management, incorporate that in your resume.

Follow up: After your interview, send a thank-you note reiterating your enthusiasm and qualifications. Persistence keeps you top of mind.

Why Costco is Worth the Effort

Landing a job at Costco post-conviction isn‘t easy, but it‘s worth fighting for. The company has a reputation as one of the best employers in retail, with benefits like:

  • Paid time off (holidays, sick days, vacations)
  • Health, dental & vision insurance
  • 401(k) with 50% company match
  • Free Costco membership for employees
  • College tuition assistance
  • Twice annual "extra check" bonuses

Wages at Costco also far exceed industry averages. An analysis by The Seattle Times found the median hourly pay is $24, compared to just $12 at Walmart. Over 50% of Costco employees make over $25/hour, and the average annual salary is around $52,000.

But beyond the monetary benefits, many felons report that Costco fosters an unusually supportive and positive workplace culture. "I feel valued here in a way I never did before," says Marta R., a stocker with a drug conviction. "My managers actually believe in me and want to see me succeed."

A Model for Second-Chance Hiring

Costco‘s openness to hiring felons isn‘t just compassionate – it‘s smart business. Studies show employees with criminal records have lower turnover rates and are often more loyal and motivated.

A study by the Society for Human Resources Management found "empirical evidence that employing ex-offenders can be beneficial to companies and society, reducing recidivism and improving the economy."

If more companies followed Costco‘s lead in giving second chances, the ripple effects could be immense. Over 600,000 people are released from prison each year, and unemployment among felons is a staggering 27%.

Securing a stable job is one of the key factors in reducing recidivism. A steady paycheck, benefits and sense of purpose go a long way in helping former offenders reintegrate as productive members of society.

While Costco is by no means perfect, their willingness to look beyond someone‘s worst mistake and extend opportunities is admirable. It not only changes individual lives, but strengthens families, communities and our economy as a whole.

As Darren M., the Costco supervisor who started as a cashier assistant with a drug felony, puts it: "This job didn‘t just give me a paycheck. It gave me a future. It gave me back my dignity. And that‘s priceless."